Bitcoin Rejection at $39K and Growing Regulatory Concerns Hit Markets Again

Volatility and choppy price action continue to dominate the cryptocurrency market on March 7, with news that U.S. President Joe Biden plans to sign an executive order later this week outlining the administration's strategy for cryptocurrencies added to the crackdown on List of factors for cryptocurrency prices.

Bitcoin (BTC) bulls struggled to regain support at $40,000 on Monday as news of an impending executive order and the ongoing conflict in Ukraine roiled the market, with BTC falling to a low of $40,000 on Monday, according to data from Cointelegraph Markets Pro and TradingView. A low of $37,155.

Here's what several analysts in the market have to say about the outlook for BTC and whether crypto traders should prepare for an ongoing bear market.

Is there any sign of surrender?

Cryptocurrency trader and anonymous Twitter user "crypto Tony" has taken a bearish view on the current price action, posting the chart below outlining the potential for Bitcoin to drop below $20,000 if the current support level breaks down.

Crypto Tony said:

"Unless we start to regain some significant supply areas, that's something that has to be considered. This choppy B wave will catch a lot of people off guard..."

Hope for a bounce at $36,000

Analyst and Cointelegraph contributor Michaël van de Poppe took a more bullish view on the current weakness, publishing the chart below outlining a potential BTC price pullback to the low-$36,000 range.

Poppe said:

“Well, Bitcoin is still correcting after a rejection at $39,200. Let’s say we’re going to get some liquidity lows before we get a chance to get some upside momentum.”

Scott Melker, a cryptocurrency trader and host of The Wolf of All Streets podcast, highlighted the technical evidence that BTC prices could recover soon, posting the chart below, noting that “my favorite signal exists — a bullish one on the 4-hour chart Divergence vs oversold RSI."

Melker said:

“That said, the price does need to break above $39,600 to avoid the hidden bearish divergence, so it’s really hard to get excited about. There are a lot of things that can come from these divergences.”

BTC Above $29,000 Can Avoid Bear Market

Crypto analyst and anonymous Twitter user "Plan C" sought to reassure those concerned about the possibility of a bear market, posting the chart below and advising that "people need to stop spreading misinformation."

Plan C says:

Bitcoin is not a bear market right now. Above 29k = medium term accumulation. Below 29k = bear market. Since when do we have higher highs and higher lows in a bear market? This is the traditional definition of a bear market for cryptocurrencies.

The total market capitalization of cryptocurrencies is now $1.685 trillion, with Bitcoin dominance at 42.3%.